Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).
FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,packaged food products, soft drinks, tissue paper, and chocolate bars.Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of Rs.
85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments.INTRODUCTION Customer satisfaction survey has been conducted on Fast Moving Consumer Goods (FMCG) industry; considering two significant product categories in that industry; namely, oral care and personal wash (soaps) segments. Such a survey is very important as customer satisfaction can impact every aspect of the business from earnings to stock profits. The survey was conducted to encourage clients and customers to give vital feedback on issues that can affect customer retention, including: * Overall satisfaction * Product-specific satisfaction Brand perception * Pricing * Timeliness of delivery * Customer service satisfaction * Returns and exchange process satisfaction * Interest in new products and services It would help the companies involved in FMCG industry to optimize the relationship with their clients/ customers. The objectives of this survey are: 1.
Measure customer satisfaction levels 2. Improve customer retention 3. Gauge interest in new products and service offerings 4. Pinpoint areas for process improvement 5.
Get actionable feedback at an affordable price. NEED AND PURPOSE OF THE STUDY:The purpose of the study is to measure customer perceptions of how well the FMCG industry as a whole delivers on the critical success factors and dimensions of the business. These usually include factors like service promptness, staff responsiveness, and understanding of the customer’s problem. Customer loyalty and satisfaction levels can be determined by analyzing the data gathered from our survey questions. * discover new product and service development ideas; * determine what makes customers loyal; * Understand customer issues and relationships of industry with the consumers.This study on customer satisfaction in FMCG industry can assist decision-makers of FMCG companies in developing strategies to achieve the all-important goal of gaining and retaining customers. Results can play a key role in identifying areas of the business that require corrective action and improvement.
It also identifies areas that can be leveraged to achieve business growth and expansion. 1. Importance for Small Businessrestaurant image by Thorsten Frisch from Fotolia. com : Small and new businesses can gain repeat customers.
2.Importance for Medium to Large Businesses:Shopping carts of supermarket image by TekinT from Fotolia. com Larger businesses can monitor customer satisfaction levels. Larger businesses have levels of managers and executives who usually don’t have direct, one-on-one contact with customers. Survey provides data and feedback to monitor customer satisfaction levels and assess employee performance in fulfilling management objectives and goals. Survey targets specific customers by demographics, by geography, marketplace needs and more. 3.
Importance to Customers:customer service image by Kurhan from Fotolia. om Results can provide insights to increase business–in good and bad times. Most customers actually desire a long-term relationship with a brand, product or service provider. Customer satisfaction survey provides a platform for them to do so. Their responses, whether good or bad, provide a wealth of information and feedback to utilize in developing, retooling and improving the customer experience with brands, products and services. Risks of Not Conducting Surveys: Some business decision-makers hold the opinion that surveys only attract disgruntled customers.
That attitude could prove risky.It opts to rely on gut and intuition without actual, quantitative and qualitative information directly from customers. The result could mean unrealized growth, missed opportunities and loss of customers to competitors. SCOPE OF THE STUDY: It would help in understanding the extent of satisfaction of consumers with the FMCG industry and its multitude of segments. It can build a foundation on which customer relationships can be built upon. The study would be covering mostly the area of southern India and customer satisfaction and loyalty of south Indians over FMCG products.The study would concern the opinions of customers over a minimum period of 1 month.
LIMITATIONS: Since the FMCG industry is a big industry harboring numerous segments and thousands of products, it is not possible to conduct survey on the whole FMCG industry within a limited period of time. 2-3 product categories may be taken. Limited time and lack of awareness of other efficient data gathering techniques and tools for analysis have limited the accuracy of our findings in this survey. RESEARCH METHODOLOGY Research have been carried out by collecting primary data, i. ; from the primary sources of data because data collected in this manner is unique and original. While collecting the primary data, we have used the questionnaire method which is a popular means of collecting data.
We have used the questionnaire in its own right as well as a basis for interviewing and telephone survey. This method was adopted as it was relatively cheaper, covers a wider geographical area and respondent can consider his/her responses before answering. The questionnaire contains 17questions; Out of which first 6 conveys personal information & rest are regarding onsumer’s opinion on FMCG industry.
It has a combination of both open-end and close-end questions. Two are open-end questions & 9 are closed- end questions. Except the final 2(unstructured), rest of the questions are structured questions. Attitude questions have also been employed.
Semantic differential scale and likeart scales have been used in the questionnaire to gauge the customer response on a scale of 1-10 and 1-5. Probability method of sampling has been used. Numbers of the collected samples are 50. We have considered the oral care category& personal wash (soap) category while studying the FMCG industry.
For this purpose we have collected 25 samples from oral care & 25 from personal wash (soaps) category. Samples have been collected from diverse areas around South India (Andhra Pradesh & Kerala) & from different age groups & from housewife, daily workers, retailers, professional workers, retired people, students& so on. Data analysis The data is collected from a small sample of population. We collected the data from 40 people from different areas. Based on these data we could able to find the following things. The data below shows the findings of personal wash soaps.Customer satisfactory survey on personal wash (soaps) products 1. Age group of the sample Age group| No.
| 18-24| 10| 25-34| 17| 35-44| 2| 45-54| 6| 55-64| 4| 65 and above| 1| 2. Level of Education Level of Education| Number| Higher Secondary Or Below| 7| Senior Secondary| 8| Graduation| 11| Post Graduation| 8| Professional Course| 6| 3. Employment status Employment Status| Number| Govt Service| 10| Private Service| 13| Business| 4| Self Employed| 3| Retired| 2| Student| 8| 4. Household Income Per Month Household Income Per Month| No. | Below 5000| 5| 5000-10,000| 18| 10,000-50,000| 14| 0,000-1,00,000| 2| 1,00,000 and above| 1| 5.
Product Usage(SOAP): Brand| Percentage| Lux| 37. 5| Lifeboy| 15| Dove| 15| Pears| 17. 5| Medimix| 5| Santoor| 2. 5| Other| 7. 5| 6. Source by Which they Came to Know about the Product How Came to Know About the Product| No. | Friends/Relative| 4| Television| 26| News Paper| 5| Magazine| 2| Internet/ Websites| 3| Other| 0| 7. Satisfaction Level of the Product satisfactory level| Very Satisfied| Satisfied| Neutral| Dissatisfied| Very Dissatisfied| Lux| 14| 1| 0| 0| 0| Lifeboy| 5| 1| 0| 0| 0| Dove| 6| 0| 0| 0| 0| Pears| 7| 0| 0| 0| 0| Medimix| 1| 1| 0| 0| 0|Santoor| 1| 0| 0| 0| 0| Other| 2| 0| 1| 0| 0| 8.
Order of Importance when Buying Soap Order of Importance When Buying Soap| No. | Quality| 21| Price| 7| Quantity| 5| Brand Name| 3| Familiarity| 4| Customer Satisfaction Survey on Oral (tooth paste) Care. 1. Age of Respondents Age of respondents| No. | 18-24| 15| 25-34| 7| 35-44| 8| 45-54| 9| 55-64| 1| 2. Level of Education Level of education of respondents| No.
| Higher secondary or below| 2| Senior secondary| 5| Graduation| 16| Post graduation| 9| Professional course| 8| 3. Employment Status Employment status| No. | Govt service| 7|Private service| 12| Business| 4| Self empioyed| 3| Retired| 1| Student| 13| 4. Household Income Per Month Household income per month| No. | Below 5000| 5| 5000-10000| 21| 10000-50000| 10| 50000-100000| 4| 100000 and above| 0| 5. Source by Which they Came to Know about the Product How did they came to know| No| Friends/relative| 6| Television| 29| Newspaper| 3| Magazine| 1| Internet/Website| 1| Other| 0| 6. Satisfaction Level satisfaction level| Very Satisfied| Satisfied| Neutral| Dissatisfied| Very Dissatisfied| Cogate| 18| 0| 0| 0| 0| Pepsodent| 5| 1| 0| 0| 0| Close-up| 11| 0| 1| 0| 0|Dabur| 1| 0| 1| 0| 0| Babool| 0| 1| 0| 0| 0| Other| 0| 0| 1| 0| 0| 7.
Product Users(Toothpaste): Users| No. | Cogate| 18| Pepsodent| 6| Close-up| 12| Dabur| 2| Babool| 1| Other| 1| SWOT Analysis: SWOT analysis is a industry/product to provide recommendations of their performance and growth potential. It is a powerful tool for analyzing both complex qualitative and quantitative facts of an investment decision. The swot analysis identifies strength and weakness and relates them with forward-looking opportunities and threats.
This helps to identify company and industry specific drivers and catalysts.Strength: The quality of product is very good maximum numbers of customers are very satisfied with quality. The way of advertisement is very strong. Most of the people know about product by Television.
Weakness: The way of advertisement is maximum through television. What about rural people where electricity is not available. Opportunities: Today most of the people of rural area are using tooth paste; they are more health conscious, so the future of this industry is very bright. The family consumption of FMCG products is increasing day by day, so the industry is on steady growth. Threats:Because of high price competitors can easily penetrate in market. Sometimes it becomes very difficult to compete with our own product. Findings: From the above Survey we found that most of the customers are quality oriented. Their first importance in any product is quality, after that price and third importance is quantity, fourth one is brand name, and last one is familiarity.
It means customers are more aware of about quality not to the brand name and they are also price conscious. The main source of awareness is television. Most of the people are getting familiar to the product through television.
We find that more than 37% peoples are using LUX, 15%- Lifebuoy, and Dov-15%, Madimix-5%, Santoor-2. 5, and other brand-7. 5%. it means LUX is very famous brand in middle(10000-50000 per month) and lower middle class(5000-10000 per month) families. We found that overall satisfaction level of Pears and Dove is very high, 100% people are very satisfied. And for Lux 93% people are very satisfied, and 7% satisfied. And for Lifebuoy 83% people are very satisfied, 17% are just satisfied. We found that most of the users of Colgate are from middle and lower middle class society.
Satisfaction level of Colgate is also very high. Recommendations’ We find that people are more conscious about product quality and price so marketer should maintain the quality and fix the reasonable price. They are not much aware about brand name so marketers should don’t waste the money on brand promotion and advertising, as we found that more than 70% people know about product b Television so they invest in telemarketing.
So many consumers have commented on packaging, variety and taste of Colgate so they should work on it. Some peoples are not satisfied with color and flavor of Pepsodent paste, CONCLUSION: t has been an enlightening first hand experience to conduct a consumer satisfaction survey using questionnaires and the conclusion we have drawn is based on direct responses from the respondents. After collecting this sample survey we found that most of the people are more aware about quality of product this is a very good symbol for healthy competition in market. After that they look on price of the product, it means if product quality is good they ready to pay more money but we found that they are not much worry about brand name, that’s bad for marketers who didn’t made brand loyalty in customers. e found that most of the people know about product by Television.
it means in rural area where electricity is not available people are not much aware about these products. NOTE: Even though we have conducted the survey very carefully if there is any mistake of % satisfaction or coverage of market it should be ignorable. It may be due to typing error calculation error or short sightedness. Don’t use this data for any real survey it is just for study purpose.